Ministry of Finance
India signs a Loan Agreement of $328 Million with the World Bank for Improved Health Services in Andhra Pradesh
The Government of India, Government of Andhra Pradesh and the World Bank Executive signed here today a Loan Agreement of $328 Million to help improve the quality and responsiveness of public health services in Andhra Pradesh.
The State of Andhra Pradesh has over the years demonstrated a strong commitment to improving health outcomes. In 2017-18, it allocated 5 percent of its total public expenditure towards health and has initiated significant steps towards strengthening its public health system.
Maternal mortality ratio in the state declined by 52 percent and infant mortality fell to 35 per 1,000 live births from 54 over the decade from 2005. Ninety-three percent women now opt for institutional deliveries. Despite these positive steps, there exist disparities within the state in coverage of maternal and child health services and quality of service delivery. Non-communicable diseases are also on the rise and form 60 percent of Andhra's burden of disease.
The World Bank Loan will support the Government of Andhra Pradesh  as it scales-up its efforts to bring better health care to all its citizens, especially pregnant women and those at risk of non-communicable diseases, like hypertension, diabetes and cervical cancer.
The Loan Agreement was signed by Mr. Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India; and Mr. Shanker[WU1] Lal, Acting Country Director, World Bank on behalf of the World Bank.
Speaking on the occasion, Mr. Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Ministry of Finance said that the Government of India's commitment to improve the country's health outcomes are fully mirrored in the State of Andhra Pradesh. This New Project will help leverage the State’s own systems and processes, and build capacity, thus enhancing the sustainability of the interventions.
Public health institutions in the state will be strengthened through generation of quality information and its use in day-to-day management, and resource allocation process. Public feedback will be sought as a performance indicator for the State's Public Health Institutions.
Earlier, Mr. Junaid Ahmad, Country Director, World Bank said that Andhra Pradesh has been fully committed to improving its health outcomes. The Project will support the state in adopting innovative and technologically-driven approaches to improve access and quality of health services. He further said that the Project will support certification of health centers when they achieve and maintain quality standards; engagement of private service providers for improved quality of care; improved pharmaceutical stock management system; integrated online patient management system; and empanelment of private pharmacies to dispense State-financed drugs to improve their access to the population. It will also support the rollout of a system for measuring and reporting on patient experience.
Ms Mohini Kak, World Bank Task Team Leader for the Project said that today, a primary health care facility exists for every 5,721 population on average in Andhra Pradesh and a secondary/tertiary care facility exists for every 200,000 population in the state. A continued focus on quality of care and availability of services will ensure quality health services to all, especially the poor.
The $328 Million Loan from the International Bank for Reconstruction and Development  has a 23.5-year maturity which includes a 6-year grace period.